Annual profits of “multiple businesses” decreased by 98% to 352 thousand riyals
A company’s net profits decreased "Multiple business group" for the fiscal year 2025 by 98% to 352 thousand riyals, compared to a net profit of 20.5 million riyals in the previous year.
According to a statement on "Saudi Arabia trading"The decrease in net profit is due to a decline in building contracting revenues by 2%, and a decrease in gross profit by 73% as a result of the impact of profit margins on competitive pricing policies in light of the limited new award awards for projects, which led to an increase in the contribution of projects with low margins within the revenue structure.
The company also incurred operating expenses, including manpower costs allocated to some existing projects, the start of which was delayed for regulatory reasons related to customers, which was reflected in the decrease in exploitation rates and the lack of full benefit from Available operating capacity, while the recognition of associated revenues has been postponed.
The company confirmed that it is currently working to improve the efficiency of resource utilization and expand the scope of new awards to correct profitability margins in the coming periods.
Recommendation to increase capital
In a related context, the company’s Board of Directors recommended to the extraordinary general assembly of shareholders to increase the company’s capital by 200% by granting free shares by capitalizing an amount of 30 million riyals from the issue bonus balance, by granting two shares. For each share owned by shareholders.
If the recommendation is approved, the company’s capital will rise to 45 million riyals, compared to 15 million riyals before the increase, and the number of shares will rise to 45 million shares, compared to 15 million shares before the increase.
The company aims by increasing the capital to strengthen the company’s capital base to support the implementation of existing and future projects, and to improve the alignment of the financial structure with the requirements of growth and expansion plans.
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